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ADVISORY COUNCIL 29 MAY 2013. Short Term Feedback. Presenter: Barry Taylor. The past year. The past year:. Binder Agreements Regulations concluded Take aways: Principles based Binder Fees permitted Responsible attitudes Next steps: Guidelines to Insurers on implementation
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ADVISORY COUNCIL 29 MAY 2013 • Short Term Feedback Presenter: Barry Taylor
The past year: • Binder Agreements Regulations concluded Take aways: • Principles based • Binder Fees permitted • Responsible attitudes Next steps: • Guidelines to Insurers on implementation • Guidelines on moving of books of business
The past year (cont): • Outsourced Agreements (Directive 159) Applicable to Insurers and effective Take aways: • Fee allowed for issuing policies • Cost recovery for non intermediary service activities
The past year (cont): • Permissible Remuneration: • Commission (capped as per STIA/ paid by Insurer) • Binder Fees (Binder regulations / paid by Insurer) • Broker/policy fee ( Sec 8(5)STIA moving to Regulations / paid by policyholder) • Outsourced fee for non intermediary services (paid by insurer or to broker by a third party) NB. There can be NO duplication of remuneration
The past year (cont): • Sec 8(2)d – Placement of business with non registered insurers • Client protection vs. market protection • SASRIA Commission • Increased by 1% effective I July • VAT Review with SARS • Aggregators /”pseudo” aggregators – FSB representation • Firmer line by FSB – we need to provide detail
The past year (cont): • Industry sustainability of Insurance forum • Environmental, Social and Governance factors • ST Ombud liaison • Industry stats now published • Isabel Jones award dispensed with • STRIDE – switch live and ready for transactions • FAIS Ombuds Fee (no longer)
The past year (cont): • Other involvement: • IDS • Windscreen glass debacle • Demarcation • Finance and Motor Vehicle Systems (FIVS) • Industry initiative including banks and finance houses • Collection of vehicle data such as ownership, insured status and claims data
2013/4 • Ongoing regulatory participation and influence – G20 pressures • “Cost of doing business” project • STRIDE • Compulsory Third Party (motor) – continue with the pressure • TCF • Twin Peaks • Solvency Assessment and Management (2016)
The challenge • “What is our Raison d’etre ?” • What is our purpose? • Understand what our businesses are about!
STOP MAKING EXCUSES JUST BE PROACTIVE (bill price/Sunday Times 9 May 2010) • Improvement happens when we are willing • to evolve and grow • what needs to change around here to • improve the way we do things for our • customers?
Where is market innovation • coming from? Direct Marketers??? FIA??? SAIA???
DO WE NEED TO REFOCUS AND RE- • ENERGISE IN GETTING BACK TO OUR CORE FUNCTION, “BECOMING SMART INSURANCE ADVISERS” AGAIN?
Consider the sustainability • of our markets?
How are we going • to achieve without • attracting skills • and talents?
Despite the FAIS qualification regime • why are the levels of practical knowledge • so poor? • Industry Human Capital Initiative • How serious are we about taking • ourselves to another level of service • excellence?